2014-19 Strategic Plan 2014/15 Annual Performance Plan

PRESENTATION TO THE PORTFOLIO COMMITTEE PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKSON PUBLIC WORKS

ONON

2014-2019 STRATEGIC PLAN AND 2014/15 ANNUAL 2014-2019 STRATEGIC PLAN AND 2014/15 ANNUAL PERFORMANCE PLAN OF THE DEPARTMENT OF PERFORMANCE PLAN OF THE DEPARTMENT OF

PUBLIC WORKSPUBLIC WORKS

Director-GeneralDepartment of Public Works

08 July 2014

No Item Slide

1. Regulatory requirements for Strategic Plans and Annual Performance Plans 3-5

2. Part A: Strategic Overview

•Legislative and other mandates

•Introduction and strategic context

•Planned policy initiatives

•Situational analysis

•Performance environment

•Organisational environment

•Salient issues on budget

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3. Part B: Strategic objectives and programme plans

PROGRAMME 1: ADMINISTRATION

•PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT

•PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP)

•PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION

•PROGRAMME 5: AUXILIARY AND ASSOCIATED SERVICES

38-48

4. Part C: Infrastructure Plan

Links to Long Term Infrastructure Plan

49-72

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1 Regulatory requirements for Strategic Plans and Annual Performance Plans

This section provides context to the regulatory requirements in accordance with the National Treasury Framework for Strategic Plans and Annual Performance Plans

• The Framework for Strategic Plans and Annual Performance Plans, issued in September 2010, provides a new format and revised timeframes for the compilation of the Strategic Plan and Annual Performance Plan.

• National Treasury issued an Instruction Note (No. 33) in July 2011 on the full compliance to the mandatory requirements of the Framework for Strategic Plans and Annual Performance Plans.

• A Strategic Plan covers a period of at least five years ideally from the first planning cycle following an election linked to the identified outcomes of the Presidency.

• A Strategic Plan may be changed during the five year period it covers. However, such changes should be limited to revisions related to significant policy shifts or changes in the service delivery environment

• The Annual Performance Plan sets out what the institution intends doing in the upcoming financial year and during the MTEF to implement its Strategic Plan.

• The format of the APP (including the tables) is prescribed by the National Treasury Framework for Strategic Plans and Annual Performance Plans and aims is to link the plans, budget and performance of the Department.

• Annual targets are broken up into quarterly targets where possible to ensure effective monitoring of performance on a quarterly basis

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5

Performance indicator Audited/Actual performance Estimated performance

20XX-1

Medium-term targets20XX-4 20XX-3 20XX-2 20XX 20YY 20ZZ

1.1 Short name 1.2 Short name

Performance indicator Reporting period Annual target 20XX

Quarterly targets

1st 2nd 3rd 4th

1.1 Short name Quarterly 1.2 Short name Biannual 1.3 Short name Annual

Programme Performance Indicators and Annual Targets (Table 2)

Strategic Objective Strategic Plan (5 Year Target)

Audited/Actual performance Estimated performance

20XX-1

Medium-term targets20XX-4 20XX-3 20XX-2 20XX 20YY 20ZZ

1.1 Short name

1.2 Short name

Strategic Objectives and Annual Targets (Table 1)

Quarterly targets (Table 3)

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2 PART A: Strategic overview

This section specifies the vision, mission, values and the goals that the Department aims to achieve over a five-year period.(SP Pages 15 - 58 and APP Pages 16-50)

Constitutional mandate:The Constitutional mandate is provided for in Schedule 4, Part A, of the Constitution of the Republic of South Africa: Functional Areas of Concurrent National and Provincial Legislative Competence.

Legislative mandateThe legislative mandate is primarily governed by the Government Immovable Asset Management Act, 2007.

The Department regulates the construction industry and built environment through the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) and the six Professional Council Acts that regulate the six Built Environment Professions (BEPs), and through the Council for the Built Environment Act (Act No. 43 of 2000)

Policy mandates•DPW White Paper: Public Works, Towards the 21st Century, 1997•DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and

Development in the Construction Industry, 1999•Construction Sector Transformation Charter, 2006•Property Sector Transformation Charter, 2007•DPW Broad-based Black Economic Empowerment Strategy, 2006•Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007•Green Building Framework, 2011 7

The following Government priorities form the basis of the Strategic Plan informed by the ruling party manifesto and National Development Plan translated into the Medium Term Strategic Framework (MTSF):

•Outcome 4 (Chapter 3 of the NDP) - Decent employment through inclusive economic growth – The EPWP will continue to be an effective cushion for the poor and unemployed. Phase 3 of the EPWP which covers the period 2014/15 to 2018/19 aims to create 6 million work opportunities.

•Outcome 6 (Chapter 4 of the NDP) – An efficient, competitive and responsive infrastructure network – The Department will continue prioritising infrastructure requirements at the LPOE to facilitate cross border trade and strengthen socio-economic development.

National Infrastructure Maintenance Strategy (NIMS) is a coordinated programme of action being led by the Department and supported by the Construction Industry Development Board (cidb) to deal with infrastructure maintenance for different sectors.

•Outcome 7 (Chapter 6 of the NDP) - Comprehensive rural development – The Department will be collaborating with sector departments and rural municipalities to coordinate infrastructure planning and ensure maximum impact in rural areas.

•Outcome 12 (Chapter 13 of the NDP) - An efficient and effective development-oriented Public Service – Through strategic planning instruments (U-AMP and C-AMP) the Department provides accommodation to user departments that promotes integration, accessibility, sustainability, environmental sensitivity, economic growth and social empowerment.

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In addition the following priorities has also been considered as significant to the Strategic Plan: •Outcome 1 (Chapter 9 of the NDP) - Quality Basic Education – The Department in collaboration with DBE will be replacing inappropriate structures at 36 schools and making aesthetic improvements to 915 schools.

•Outcome 5 (Chapter 9 of the NDP) – Skilled and capable workforce to support an inclusive growth path. The Department has a number of development programmes such as the young professionals programme, internship programme, learnership programme and artisan programme providing valuable on the job experience.

•Outcome 8 (Chapter 8 of the NDP) – Sustainable human settlements and improved quality of household life. Through the ICR Programme the Department consolidates Government’s services to ensure accessible public services to those living in remote areas.

•Outcome 10 (Chapter 5 of the NDP) – Protect and enhance our environment assets and natural resources. The Department will continue implementing the Green Building Framework in line with Government’s transition to a low carbon economy.

•Outcome 14 (Chapter 15 of the NDP) – Nation building and social cohesion – The Department in partnership with the CoT will create a more functional and aesthetically pleasing inner city.

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Vision

A service oriented Public Works Department delivering value and contributing to the national agenda for social and economic development. Mission•Provide quality accommodation and related services to our clients,

•efficiently and effectively manage the immovable assets in our custodianship,

•actively contribute to the national goals of job creation and poverty alleviation through the Expanded Public Works Programme,

•provide expert built-environment advice to our stakeholders,

•provide strategic leadership to the South African Construction and Property Industries.

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Values

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Integrity: consistently honour our commitments, upholding ethical behaviour and transparent communication.

Professionalism: treat our stakeholders with respect and reliably delivering against expectations.

Teamwork: respect diversity while sharing a common purpose and working effectively across the entire Department.

Innovation: tirelessly seek opportunities for service delivery improvement.

Strategic goals Goal statement

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An efficient, competitive and responsive accommodation infrastructure network

Manage the life cycle of immovable assets under the custodianship of the Department effectively and efficiently.

Strategic leadership and regulation of the construction and property sectors to promote economic empowerment and skills development

Provide leadership to the South African construction and property sectors whilst ensuring transformation and regulation thereof through the development of legislation and best practice guidelines.

Good corporate governance to support effective and efficient service delivery

Provide strategic leadership in ensuring effective governance, sound resource management and integrity of the operations of the Department.

Decent employment through inclusive economic growth

Lead and coordinate the creation of additional employment opportunities through labour intensive delivery methods and skills programmes for the participation of the unemployed in delivering needed services and creation of assets.

Contribute towards comprehensive rural development

Improved land administration and spatial planning for integrated development in urban and rural areas.

The Department will review and/or develop the following policies and legislation:

•Review of the Department’s White Papers: “Public Works towards the 21st century, 1997; and Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999”

•establish Agrément South Africa (ASA) as a public entity mandated to assess non-standardised and/or unconventional construction products, materials and systems fit for purpose,

•develop a draft Built Environment Professions (BEP) Policy towards possible amendments to the legislative framework governing the BEPs,

•promulgation of a new Expropriation Act (repealing the Expropriation Act 63 of 1975) to ensure consistency with the Constitution and uniformity in the expropriation of property by all expropriating authorities,

•develop legislation to establish the Independent Development Trust (IDT) as a public entity to support the State in the delivery of social infrastructure,

•develop a Green Building Policy and Strategy for the Department to give effect to Government’s green economy initiatives.

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In addition, the Department will:

•Develop a Public Works General Laws Amendment and Repeal Bill, to amend or repeal legislation assigned to the Department that are:

- inconsistent with the Constitution; or - redundant or obsolete.

•Review the Construction Industry Development Board (CIDB) Act, 2000 and its Regulations to determine legislative or regulatory challenges that may hinder the CIDB from achieving its mandate.

•Develop CIDB Regulations to:- ensure prompt payments to contractors and sub-contractors;- ensure the use of CIDB registered sub-contractors on public sector contracts; and - provide for the use of CIDB registered contractors on home building contracts.

•Revise CIDB Regulations on Register of Contractors (RoC) addressing:- Contractor grading criteria for Grade 1 registration;- Contractor grading criteria for Contractor registration renewal;- Requirements for submission of BBBEE recognition level for registration; and- Incorporating a demerit system with reportable health and safety incidents.

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• Develop Built Environment Professions (BEP) Regulations dealing with functions of the BEP Councils (e.g. Recognition of Prior Learning, Registration of Professionals, Codes of Conduct, Accreditation of Built Environment Programmes offered by Tertiary Institutions and Continuous Development of Professionals).

• Through active participation in the Property and Construction Sector Charter Councils:- revise and align the Sector Charter Codes to the revised BBBEE Codes of Good Practice

(2013);- ensure that the Councils give effect to their mandate of encouraging transformation of the

Construction and Property sectors.

• Revise the Contractor Incubator Programme (CIP) Strategy and Guidelines to ensure alignment to CIDB’s National Contractor Development Programme (NCDP) and DPW business processes, to facilitate mentorship and enhance development of contractors (Grades 3-6).

• Commence development of an Immovable Asset Management Strategy to ensure holistic and uniform management of immovable assets, in line with GIAMA.

• Commence development of a policy to ensure viable and efficient management and maintenance of heritage assets under the custodianship of the Department.

• Conduct a case study towards establishing the optimal ratio between private and state-owned properties in the Department’s portfolio.

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• Develop a policy on the use of non-core space, including advertising, on state-owned properties in the Department’s portfolio.

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The following external factors have been considered during the strategic planning process:

•Economic outlook - Economic output is expected to increase at an average of 4.1% between 2015 and 2018 led by more robust growth in advanced economies. Fiscal pressures will likely see fixed investment by the public sector remain weak through to 2015, before accelerating between 2016 and 2018.

•Inflation, rand and the interest rate - Over the medium-term, increased commodity prices on the back of more robust global economic growth should keep inflation higher.

•Building and construction sector - The building and construction sector is currently experiencing a modest revival. After accelerating by 3.7% in 2012 from 1.7% in 2011, growth in the civil construction sector is expected to average only 3.3% between 2013 and 2015. Most of this slowdown in construction demand stems from the predicted moderation in investment spending by the public sector as delays in key infrastructure projects and the slow uptake of new projects weighs. However, growth is expected to improve significantly beyond 2015 as fiscal pressures ease.

•Perceived risks – increase in unemployment due to strained industrial relations and strained Government finances, price escalations, further collusions in leasing and construction projects, depreciation of the rand, credit ratings downgrade.

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The following internal factors have been considered during the strategic planning process:

•Despite resource constraints, significant progress has been made in the overhaul of the Immovable Asset Register, review of private leases and the lease management process, addressing audit findings.

•The operationalisation of the PMTE is a critical, high profile component of the Department responsible for the State’s immovable assets, providing property management and facilities management services.

•General constraints impacting performance in the 2013/14 financial year relates to inadequate capacity in critical areas of the business, fragmented ICT systems that compromised data integrity and weak SCM processes and procedures, which are being addressed through:

o ICT interventions such as upgrades to infrastructure, upgrades to application software, business application stack intervention.

o A clean audit project was initiated to address the Department's finances and provide a tailored solution for SCM. This includes the redesign of the SCM Model and mapping out of new structures, processes and systems.

o As part of the Change Management initiatives, the Department has developed a functional HR Plan, reviewed the organisational structure, reviewed the Recruitment Policy and updated the HR Delegations. These initiatives are designed to build professional and technical capacity.

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Service delivery improvement

•The development and implementation of Service Delivery Improvement Plans is a statutory requirement to achieve continuous and incremental service delivery improvement over a three-year horizon.

•The DPW SDIP has been developed during the 2013/14 financial year and approved by the Executive Authority in March 2014.

•The SDIP is underpinned by the need to address a number of key service delivery challenges and the need to adopt the Infrastructure Delivery Management System (IDMS) as the primary system for the management of delivery.

•The SDIP sets out in clear terms three areas for improvement which have been identified through a scientific situational analysis process. These areas include the following-

o Provisioning of accommodation through construction (aligned to the IDIP);

o Provisioning of accommodation through private leases (aligned to IDIP); and

o Customer relationship management.

•In order to measure client satisfaction levels the SDIP includes the development of client satisfaction surveys, service delivery standards and charters within the selected areas for improvement.

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Turnaround Strategy:

•The Department launched a Turnaround Strategy in 2012 to address multiple issues of underperformance that ultimately resulted in progressively negative audit reports by the Auditor-General

•A 7 Year Turnaround Plan has been developed primarily to implement the Turnaround Strategy in three phases being:

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• Significant progress has been made in Phase 1 (Stabilisation) which was primarily to address critical and foundational aspects within the Department. This phase has laid the foundation for further improvement.

• The Efficiency Enhancement Phase (Phase 2) of the Turnaround Strategy has commenced.

• For reasons of impact and strategic importance, 10 projects have been conceptualised from the 23 key stabilisation projects, as essential drivers of Phase 2 for the rebuilding the Department. These projects are:

1. The development of a Service Delivery Framework

– The development of the Service Delivery Framework is the next phase in this project

following the approval and implementation of the SDIP. This Framework will institutionalise service delivery tools, systems, processes, mechanisms and intervention programmes to improve efficiencies within the Department.

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2. Operationalisation of Property Management Trading Entity and establishment of the Government Component

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2. Operationalisation of Property Management Trading Entity and establishment of the Government Component (cont…..)

− Progress with regard to the opertionalisation of the PMTE includes the transfer of immovable assets from the Department to PMTE as well as a submission to Cabinet on the business case and feasibility study for the operationalisation of the PMTE as a Government Component which is currently in the Cabinet system.

3. Developing a complete and credible register of State immovable assets− An intergovernmental structure, currently known as the Provincial State Land Vesting and Disposal

Committee (PSLVDC) has been developed with a view to coordinate immovable asset disposal processes as well as confirmation of vesting of all State immovable assets in the National and Provincial spheres.

− 42 693 State land (registered, unregistered and section 42 land parcels) have been reconciled, although the custodianship of 1 459 land parcels is being resolved.

− Physical verification for 32 570 properties has been completed and 13 300 land parcels have been vested

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4. Conducting a comprehensive audit of leased properties and the establishment of a leasing management framework

– A comprehensive audit of 2 161 leased properties has been completed including the physical verification of 2 143 leased properties.

– A proposed To-Be Functional Model, Business Processes and Lease Management Structure have been developed including the revised Standard Lease Agreement template, preliminary checklist for documents to be included on lease files and a Lease Management Policy.

– Phase 2 of the Lease Review Project will focus on the leasing out of State properties (approximately 2000) to the private sector which involves a desktop audit of lease files relating to leased out properties and a review the leasing out business processes, policies and strategy.

5. Restructuring of Supply Chain Management (SCM) to better meet business requirements

− The SCM function has been divided into four discrete areas being Infrastructure, Property Management, Goods and Services and Prestige which will have tailor-made strategies; structures; processes; resources and budgets designed to improve efficiencies in the procurement of services in each specific area.

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6. Improving internal efficiencies to meet the service delivery requirements of Prestige clients – The aim of the project is to make processes more systematic, efficient and effective

– driving both higher levels of client satisfaction and greater internal efficiencies.

– High level progress on the project includes the development of a service delivery model, organisational structure and resource plan, a special SCM dispensation, compilation of a Prestige norms and standards document.

7. Developing an Information Technology strategy, architecture and platform as a key enabler– As part of the Efficiency Enhancement Phase, ICT convergence will commence post

April 2015 with a focus thereafter on further development and value added services with a clear architectural framework, supporting infrastructure and adequate resourcing to support the Department for a prolonged period into the future.

8. Improving infrastructure delivery through the application of best practice in terms of processes, structures and systems (IDMS) − The Department has commenced the process to institutionalise the Infrastructure

Delivery Management System over a three year period.

− A Departmental Work Plan has been developed in this regard aimed at sustainable implementation of the IDMS.

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9. Actively combating fraud and corruption, both within the Department and in the construction and property sectors, holding transgressors accountable for their actions– The Department has mobilised all its internal business processes to effectively

manage the reduction of the impact of fraud and corruption risks.

– The approved Fraud Prevention Strategy serves as an additional measure to assist in reducing the impact of fraud and corruption risks, with a focus on creating awareness and promoting ethical business conduct.

– The Integrated Anti-Corruption Strategy is segregated into prevention, detection, investigation and resolution to ensure that corruption and fraud cases are rigidly confronted.

10.Development and implementation of an effective change management strategy that enables a performance driven culture– The change management project is a key driver to rebuilding the Department

through effective human resource planning, recruitment and retention, training and improved performance management.

– The change management intervention is designed to systematically support all areas of the Department to effectively change the way in which business is conducted and to make the Department a client-centric one, whilst continually improving service delivery.

High Level Organisational Structure:

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Minister

Mr. T.W. Nxesi Deputy Minister

Mr. J.P. Cronin Director – General

Mr. M. Dlabantu Limpopo Intervention Team

Mr. M. Dondashe

Business Improvement Unit

Mr. M. Govender Chief Financial Officer Mr. C. Mokgoro

Corporate Services

(Acting) Mr. C. Mtshisa Asset Investment Management (Acting) Mr. P Chiapasco

Inner-City Regeneration Programme Ms. S. Subban

Key Account Management Mr. P.M. Mabuza

Projects and Professional Services Mr. M. Gwazube

Special Intervention Projects Ms. L Bici

Regional Co-Ordination Mr. M.I.B. Matutle

Expanded Public Works Programme Mr. S. Henderson

Construction & Property Policy Regulation

Mr. C. Mtshisa

Mr. M Govender

(Acting) Ms. M. Fatyela-Lindie

Mr. T.W Nxesi

Mr. J.P Cronin

Mr. M. Dlabantu

Mr. M. Dondashe

Legend

Programme 1

Programme 2

Programme 3

Programme 4

• The Department has reviewed the organisational structure which will be approved and implemented over the MTEF.

• The Department has an approved establishment of 6 818 posts of which 5 560 are filled.

• In addition, an integrated Human Resource Plan has been developed to respond to Government’s priorities and to align the Department’s workforce with the mission, vision, strategic goals and financial resources of the Department.

• The Department is experiencing challenges in producing the wide range of skills required in the construction and engineering fields, in order to meet longer-term infrastructure delivery objectives.

• The Department will therefore continue to implement its strategy to bring in skilled graduate professionals through programmes such as Young Professional, Management Trainee, Internship, Learnerships and Artisan Development programmes.

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• Through the joint project with the Construction Education Training Authority (CETA) to further expand and build technical skills in the Young Professional, Technical Internship, and Artisan Development programmes, the Department is seeking to ensure a continuous flow of professionals into the core business areas.

• Targeted human resource interventions in place include the recruitment of technical and professional staff to overcome the short-term challenges.

• In an effort to manage personnel expenditure the Department is closely managing the filling of vacant posts.

• The Department has also managed to secure additional funding from National Treasury, to specifically focus on the filling of critical, technical and professional positions.

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There are four Public Entities reporting to the Department of Public Works. The Entities serve as an extension of and assist the Department in delivering on its mandate.

• Construction Industry Development Board (cidb): The cidb supports the Department by providing strategic direction and developing effective partnerships for growth, reform and improvement of the construction sector;

• Council for Built Environment (CBE): The CBE implements projects and programmes that address the built environment issues and add value to the built environment professions, Government and the general public;

• Agrément SA (ASA): ASA supports the Department by technically assessing innovative construction technologies and promoting their use to stimulate the creation of sustainable short and long-term work opportunities;

• Independent Development Trust (IDT): The IDT supports the Department in contributing to Government’s priorities of job creation, sector skills development, green buildings initiatives and eradication of social infrastructure backlogs.

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Programmes 2013/14 2014/15 2015/16 2016/17

Previous year

Current year MTEF MTEF

Administration 1 158 162 1 175 346 1 133 293 1 191 463

Immovable Asset Management 2 981 770 2 861 387 3 308 139 3 450 040

Expanded Public Works Programme 1 947 969 1 951 295 2 006 840 2 395 237

Property and Construction Industry Policy Regulations 36 682 41 473 43 381 45 872

Auxiliary and Associated Services 50 678 91 819 53 689 56 593

Total for Programmes 6 175 261 6 121 320 6 545 342 7 139 205

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Economic classifications 2013/14 2014/15 2015/16 2016/17

Previous

yearCurrent year MTEF MTEF

Current payments 2 853 020 2 962 023 2 956 367 3 139 563 Compensation of employees 1 473 467 1 659 885 1 753 457 1 870 541 Goods and services 1 379 553 1 302 138 1 202 910 1 269 022

Transfers and subsidies 2 543 889 2 563 353 2 654 170 3 017 922 Provinces and municipalities 1 225 778 1 201 520 1 243 096 1 492 486 Departmental agencies and accounts 803 694 802 761 843 363 890 769 Foreign governments and international organisations 20 510 21 741 22 741 23 946 Public corporations and private enterprises 50 000 50 000 50 000 - Non-profit institutions 438 281 477 481 484 816 600 257 Households 5 626 9 850 10 154 10 464

Payments for capital assets 778 352 595 944 934 805 981 720 Buildings and other fixed structures 676 206 510 369 844 005 885 153 Machinery and equipment 91 162 79 232 84 165 89 580 Software and other intangible assets 10 984 6 343 6 635 6 987

Total economic classification 6 175 261 6 121 320 6 545 342 7 139 205

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• Over the 2014 MTEF an amount of R245 million was reprioritised from the infrastructure budget to compensation of employees, goods and services and transfers and subsidies.

• The reprioritisation of funds for compensation of employees was intended to cover the projected shortfall on employees salaries and for the additional appointments in the department.

• Reprioritisation of R40 million additional funds for goods and services was allocated for the Presidential Inauguration under State Functions in Programme 5. Between 2015/16 and 2016/17 goods and services was reduced by R53 million to reprioritise funds to compensation of employees.

• Transfers and subsidies reprioritisation of R9 million over the MTEF period is for the bursaries awards for non employees for students studying towards built environment qualifications.

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• There are no budget allocation increases to the baseline between 2014/15 and 2015/16.

• The allocation increase to the baseline for 2016/17 amounts to R159 million in support of the following areas:

o R74 million for the EPWP Social Sector Grant.

o R65 million for the EPWP: Non-State Sector Grant

o R10 million for the EPWP: Integrated Grant to Provinces

o R10 million for the EPWP: Integrated Grant to Municipalities

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• Over the 2014 MTEF, baseline reductions of R1.3 billion have been effected in the following areas:

- R650 million on infrastructure projects in the Immovable Assets Management programme.

- R150 million on non-core goods and services items in all programmes.

- R26.2 million on compensation of employees.

- R150 million on transfers to the Property Management Trading Entity, and

- R308.3 million on the Expanded Public Works Programme.

These reductions are largely a result of continual under spending in the Department’s infrastructure budget.

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• Spending on infrastructure decreased from R1.3 billion in 2010/11 to R676 million in 2013/14.

• The decrease of the infrastructure budget was due to the reprioritisation of funds to provide funding for the turnaround programme.

• The Department’s overall infrastructure budget has been reduced by R220 million in 2014/15, R180 million in 2015/16 and R250 million in 2016/17, mainly to provide for Cabinet approved reductions.

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MTEF Allocation - Earmarked funds

2014/15 2015/16 2016/17

R'000 R'000 R'000

EPWP: Non-state Sector 452 607 459 400 573 494

EPWP: Provision for payments of non wage cost by the non-state 24 874 25 416 26 763

Independent development Trust(Intermediary Programme management cost 10 779 11 275 11 884

Construction Industry Development Board 77 212 81 386 85 699

Council for Built Environment 41 572 44 291 46 638

Infrustructure (Public Works) 619 369 886 005 872 503

Turn around programme 279 363 200 601 200 000

Parliamentary Village Management Board 8 690 9 090 9 572

Augumentation of PMTE 673 372 706 647 746 749

Independent development Trust-Intermediary 50 000 50 000 -

Expanded Public Works Programme Integrated Grant for Municipalities 594 575 618 966 705 997

Expanded Public Works Programme Integrated Grant for Municipalities 348 947 356 574 411 798

Social Sector Expanded Public works Programme Incentive Grant for Provinces 257 972 267 529 374 662

Total 3 439 332 3 717 180 4 064 759

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3 PART B: Strategic objectives and programme plans

This section specifies strategic objectives and their resource implications and the risks that need to be managed to achieve them(SP Pages 59 - 97 and APP Pages 51 - 125)

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Strategic Orientated Goal

Strategic Objective(s) 5 year target

Good corporate governance to support effective and efficient service delivery

Promote sound corporate governance practices within DPW.

MPAT rating of 3-4 on all Governance functions.

Ensure effective and sound financial resource management.

Clean audit outcome for DPW and PMTE

Ensure effective corporate resource management.

100% Support provided to the core business of DPW through HR Planning, HCI Programmes, security management, legal advisory services and communications.

PURPOSE OF THE PROGRAMME:

To provide strategic leadership and support services, including the accommodation needs and overall management of DPW.

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The following key performance areas are most significant within Programme 1:

•Investigations initiated within 30 days based on reported allegations in line with National Treasury Regulations

•Change in irregular expenditure balance for DPW and PMTE

•Change in the value of newly identified transactions relating to irregular and fruitless and wasteful expenditure for DPW and PMTE.

•Compliant invoices settled within 30 days.

•Fraud and corruption cases within Supply Chain Management detected.

•Relevant and compliant bids awarded within the validity period.

•Planned Maintenance contracts awarded to contractors registered on the DPW Contractor Development Programme (CDP).

•Contracts on the approved DPW Procurement Plan awarded in line with the batch tendering process aligned to the IDMS model.

•Beneficiaries participating in the DPW skills development programme.

•ICT infrastructure upgrade to secure system access for PMTE and DPW business units.

PURPOSE OF THE PROGRAMMEProvide and manage Government’s immovable property portfolio in support of Government’s social,

economic, functional and political objectives.

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Strategic Goal Strategic Objective(s) 5 year target

An efficient, competitive and responsive accommodation infrastructure network

Effective life cycle asset management of immovable assets under the custodianship of the Department.

Integrated plans for DPW’s immovable asset portfolio developed.

Contribute towards comprehensive rural development

Improved land administration and spatial planning for integrated development in urban and rural areas

DPW infrastructure plans integrated with sector departments and 25 rural municipal Spatial Development Frameworks (SDF’s)

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•Properties in the Immovable Asset Register populated with information fields that are GRAP compliant and land parcels vested.

•Immovable assets valued to determine deemed carrying amounts.

•Approved Immovable Asset Management Framework and property performance standards (PPS) for all categories of Immovable Assets.

•Approved Construction Implementation Programmes.

•Approved National Infrastructure Maintenance Strategy.

•Properties released for Land Reform and for Human Settlements.

•User departments accommodation solutions produced for project implementation

•Government precincts integrated with the spatial development frameworks of identified municipalities.

•DPW’s infrastructure programme integrated with sector departments and rural municipal spatial development frameworks.

•Completed client survey index for SDIP towards compilation of a Client Value Proposition.

•Service Level Agreements approved by identified user departments.

•Procurement Instructions issued as per approved Construction Implementation Programmes.

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• Construction and beautification of schools.

• Planned construction projects completed as per approved Construction Implementation Programmes.

• Land Ports of Entry under recapitalisation as per the CWIP

• State-owned buildings made accessible for persons with disabilities as per the CWIP

• Approved Infrastructure Programme Implementation Plans (IPIPs) for user departments.

• Approval of project scopes.

• Budget variance on each completed project.

• Implementation of the approved Construction Implementation Programmes.

• Reduction of expired leases for leased accommodation.

• Lease agreements signed within 30 days after finalisation of the open bid process.

• Day-to-day maintenance breakdowns addressed (calls closed) within agreed timeframes.

• Buildings retrofitted in terms of green building principles.

• Response times for the provision of office and residential movable assets to Prestige Clients (in line with the Ministerial Handbook) from date of receipt of request.

• Response times for resolution of Prestige maintenance issues after logging of complaint (within the mandate of DPW).

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Strategic Goal Strategic Objective(s) 5 year target

Decent employment through inclusive growth

Co-ordinate, monitor and evaluate the creation of work opportunities and income support to the poor and unemployed, so as to contribute to national goal of job creation poverty alleviation

6 million work opportunities created for the poor and unemployed between 2014-2019 aligned to the EPWP Business Plan (Phase 3)

PURPOSE OF THE PROGRAMMETo provide work opportunities and income support to poor and unemployed people

through the labour-intensive delivery of public and community assets and services, thereby contributing to development

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•Work opportunities created through EPWP labour intensive approach aligned to the EPWP business plan (Phase 3).

•Disbursement of performance based incentive allocations to eligible public bodies across all sectors

•Beneficiaries trained through the National Skills Fund

•Youth participation in the National Youth Service programme within DPW

•Work opportunities created in rural municipalities aligned to the EPWP phase 3 business plan

•Work opportunities created by DPW

PURPOSE OF THE PROGRAMME

• To promote growth and transformation in the construction and property industries.• To promote uniformity and best practices in the construction and immovable asset

management in the public sector.

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Strategic Goal Strategic Objective(s)

5 year target

Strategic leadership and regulation of the construction and property sectors to promote economic empowerment and skills development

Promote growth and transformation of and competition in the construction and property industries.

Legislation on Agrement SA, Independent Development Trust (IDT) and Built Environment Professions enacted; and revised White Papers on the Public Works function and Construction Industry approved by Cabinet

Promote uniformity and best practice in construction and immovable asset management in the public sector.

Best practices on expropriation and immovable asset management developed

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•Draft amendments to legislative framework for the Built Environment Professions (BEPs) developed.

•Revised draft Independent Development Trust (IDT) Bill developed.

•Draft revised DPW White Papers developed.

•Construction and Property Sector Codes aligned to the revised BBBEE Codes of Good Practice (2013).

•Draft Immovable Asset Investment Policy developed.

Purpose of the programme: Provides services including compensation for losses on the

Government assisted housing scheme, assistance to organisations for the preservation of

national memorials. Meet the protocol responsibilities for state functions.


•Prestige events supported with infrastructure related services.

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4 PART C: Links to long term infrastructure plan

This section considers the long term infrastructure plans and conditional grants

(SP Pages 98 - 107 and APP Pages 126 - 135)

SUB-PROGRAMME: INFRASTRUCTURE (DPW CAPITAL BUDGET)The acquisition of infrastructure for DPW’s own accommodation needs as well as for the prestige portfolio, land ports of

entry, dolomite risk management, inner city regeneration programmes and accessibility programmes in terms of the disability policy is funded from the Infrastructure (Public Works) allocation.

1. New, replacement, upgrade and additions

No of projects

Infrastructure Programme Type

Outcome Main appropriation

Adjusted Appropriation

Revised Estimate

Medium Term Estimates

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000

95 Departmental 261,201 285,294 228,106 227,000 - 227,000 86,000 158,000 204,066

119 Accessibility 18,978 11,386 4,992 25,000 - 25,000 11,369 9,005 9,482

37Dolomite Risk Management 11,861 32,167 32,355 54,000 - 54,000 17,000 141,000 148,473

110Land Ports of Entry 372,000 274,626 233,892 202,206 - 202,206 233,000 285,000 277,239

17Inner City Regeneration 145,389 42,059 94,838 55,000 - 55,000 107,000 101,000 106,353

60 Prestige 446,445 365,876 118,820 113,000 - 113,000 56,000 150,000 139,540

Total 1 255 874 1 011 408 713 003 676 206 - 676 206 510 369 510 369 844 005

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Project Details Project costR`000

1. Pretoria, Salvokop, contribution to bulk services 62 490

Development of Government precinct

2. Maseru (Lesotho), Border post, Land port of entry: Lesotho Free State border road infrastructure project plan, phase 1,2 and 3

100 000

Construction of access road and upgrading and redevelopment of boarder post

3. Pretoria central, HG de Wit building, refurbishment of existing building

38 250

Refurbishment of building to serve as student accommodation

4. Skilpadhek Border Post, Land Port Of Entry: redevelopment project, construction of main border post (civil works, operational buildings, bus and light vehicle inspection)

33 844

Redevelopment of border post

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5. Port Elizabeth, Eben Donges building, alterations and refurbishment including air conditioning and mechanical installation

18 983

Alteration and refurbishment of existing building including air-conditioning

6. Cape Town, Parliamentary complex, 120 Plein Street, 100 Plein Street and Marks buildings: replace 14 lifts

15 555

Replacement of lifts 14 lifts

7. Cape Town, Parliamentary complex, National Assembly, NCOP and old Assembly buildings: replace 19 lifts

13 182

Replacement of 19 lifts

8. Malmesbury, medium a prison, upgrade of existing hot water systems and water reticulation

13 110

Upgrading of existing services for water systems

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9. Golela border post, redevelopment project: construction of residential accommodation, repair, maintenance and upgrading of buildings and infrastructure; electrical installations and mechanical equipment

16 887

Redevelopment of Land Port Of Entry, including new buildings and repairs, maintenance and upgrading of existing buildings

10. Boesmansnek, Ongeluksnek and Ramatselison's Land Ports Of Entry, repair, maintenance and upgrading of buildings and infrastructure; electrical installations and mechanical equipment

7 247

Upgrading of Land Port Of Entry, including repairs, maintenance and upgrading of existing buildings

11. Zastron, Makhaleng, Telle and Sepapushek Land Ports Of Entry, maintenance and servicing of building, civil, mechanical and electrical installations

62 490

Repairs, maintenance and upgrading of existing buildings

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12. Paarl, Drakenstein prison, 30 boiler houses, replacement and upgrading of electrical and mechanical installations

6 572

Repairs and maintenance of existing electrical and mechanical services, including boilers

13. Pretoria, Bryntirion, heritage - construction of outer boundary fence

6 392

Construction of perimeter fence

14. Vioolsdrift and Alexander bay Land Ports Of Entry, maintenance and servicing of buildings, civil, mechanical and electrical infrastructure

5 662

Upgrading of Land Ports Of Entry, including new buildings and repairs, maintenance and upgrading of existing buildings

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15. Cape Town, Rondebosch, Groote Schuur Estate, heritage, upgrade of Koeikamp, irrigation dam, replacement of potable water reticulation and relining of sewer pipes

4 940

Upgrade of exiting irrigation system

16. Mahamba, Bothashoop and Emahlathini Land Ports Of Entry, maintenance and upgrading of buildings, civil infrastructure, electrical installations and mechanical equipment.

4 911

Upgrading of Land Port Of Entry, including new buildings and repairs, maintenance and upgrading of existing buildings

17. Bloemfontein, Central Government building, construction of office block

4 888

Development of new offices for DPW.

2. Maintenance and repairs (PMTE)

The maintenance and repair of existing state accommodation as funded by the PMTE through accommodation charges received from user departments

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No of projects




Revised Estimate


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000

2088Planned maintenance (current)

1 710 400 1 398 391 1 630 271 1 492 480 - 1 492 480 1 600 127 1 589 879 2 007 856

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1. Durban central: complete R&R to station complex, all single quarters, as well as other surrounding buildings within the complex; excluding Natalia Court.

67 659 752

Complete repairs and renovations to existing station complex

2. Pietermaritzburg old and new prison : maintenance for bulk electrical and mechanical installations

30 336 987

Repairs and maintenance of electrical and mechanical service

3. Heritage - facilities management contract for Prestige facilities 40 570 323

Facilities management contract

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4. Rehabilitation project - refurbishment/upgrade of 14 Sai Military Base in Umtata

23 160 635

Refurbishment and upgrade of Military base

5. Cape Town: official office accommodation: provide integrated facilities management services (for a 5 year period)

22 611 200


6. Cato Manor: complete R&R to station complex as well as buildings accommodating special task teams and the CID’s

22 384 888

Repairs and renovation to existing police station

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7. Elliotdale, Libode and Umtata: repair maintenance and operations of water sewerage services 19 430 206Repairs, maintenance of Water Sewerage system

3. Rehabilitation, renovations and refurbishment (PMTE)

Major renovations and refurbishment of state accommodation funded by PMTE through accommodation charges received from user departments and augmentation received from National Treasury

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No of projects




Revised Estimate


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000

1241Planned maintenance (capital) 303 799 721 245 718 712 947 593 - 947 593 1 098 444 1 451 070 1 577 982

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1. Agrivaal building site: new office accommodation for Government Department

243 362 843

New office accommodation for Government Departments

2. Innes Chambers: repair, renovations and refurbishment 54 597 045

Repairs, renovation and refurbishment of facility

3. Rehabilitation of 85 Anderson Street, Johannesburg, for DPW 24 979 332

Rehabilitation of office accommodation

4. Heritage - Prestige portfolio: 2 - interim facilities management contract

24 417 232

Interim facilities management contract

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5. Rehabilitation of 99 Shepstone Road, Durban Point area 21 941 299

Rehabilitation of existing building

6. Refurbishment of residences of sessional officials in the three Parliamentary Villages.

19 508 111

Refurbishment of residences for Parliamentary Villages

7. Rehabilitation of old DPW workshops on Prince Edward Street 18 431 378

Rehabilitation exist workshop building

8. Heritage - refurbishment of NCOP building, including HVAC, electrical and electronic installations

17 245 288

Refurbishment of existing NCOP building

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9. Cape Town: official residential accommodation: provide integrated facilities management services. (for a 5 year period)

16 718 400


10. Heritage - rehabilitation of SANDF: John Ross Highway 16 145 761

Rehabilitation of existing house

11. Durban various Government buildings: repair, modernization and maintenance of passenger and goods lifts

15 392 487

Upgrading of existing lift

12. Rehabilitation of 9 Golf Road 14 568 572


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13. Replace existing security fence with new concrete security wall 14 174 820

Upgrading of security fence

14. Complete repair and renovations of complex 13 808 449

Repairs and renovation of complex

15. Rehabilitation of 8 Mill Street building for SAPS 13 641 677


16. Rehabilitation of Old Bulwer Prison on the corner of Dartnell and Jackson Street

13 440 555

Rehabilitation od existing Prison

17. Service contract for maintenance of security systems at various units

12 921 301

Service contract for Security system services

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18. Heritage - Tuynhuys: proposed new furniture and ancillary store, business hub, paraplegic platform stair lift and security installations

12 863 206

Refurbishment of existing buildings

Incentive allocation disburses funds to provinces, municipalities and non governmental organizations based on set job creation targets

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Provinces 2013/14 (R’000)

2014/15 (R’000)

2015/16 (R’000)

2016/17 (R’000)

2017/18 (R’000)

EPWP Integrated grant to provinces - Infrastructure and environment and Culture

356 915 348 947 356 574 411 798 432 388

EPWP Social Sector Incentive grant 257 564 257 972 267 529 374 662 393 395

EPWP Integrated grant to municipalities - Infrastructure, Environment & Culture and Social Sector

611 274 594 575 618 966 705 997 741 297

Non-profit institutions 438 281 477 481 484 816 600 257 630 270

Total 1 664 034 1 678 975 1 727 885 2 092 714 2 197 350

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Summary by Province

Allocation (R'000)

Transferred to date (R’000)

Transfers as % of Allocation

Expenditure by Public Bodies

% of Transfers spent

Eastern Cape 92 629 92 629 100% 66 310 72%

Free State 37 456 37 456 100% 24 171 65%

Gauteng 143 808 143 808 100% 97 207 68%

KwaZulu-Natal 114 437 114 437 100% 83 577 73%

Limpopo 39 379 39 379 100% 30 110 76%

Mpumalanga 41 275 41 275 100% 32 970 80%

Northern Cape 37 618 37 618 100% 29 811 79%

North-West 37 709 37 709 100% 21 555 57%

Western Cape 66 963 66 963 100% 49 455 74%

Total 611 274 611 274 100% 435 166 71%

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Provinces 2013/14 (R’000)

2014/15 (R’000)

2015/16 (R’000)

2016/17 (R’000)

Eastern Cape 92 629 100 625

Free State 37 456 31 592

Gauteng 143 808 89 799

KwaZulu-Natal 114 437 129 712

Limpopo 39 379 49 931

Mpumalanga 41 275 54 506

Northern Cape 37 618 38 757

North West 37 709 40 919

Western Cape 66 963 58 731

Total 611 274 594 572 618 966 705 997

2015/16 and 2016/17 Allocations breakdowns to municipalities are dependent on the previous financial years performance

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Province Allocation (R'000)

Adjustment allocation (R'000)

Adjusted Allocation (R'000)

Transferred to date (R'000)

Transfers as % allocation

Expenditure by public bodies (R'000)


EC 79 577 79 577 79 577 100% 76 703 96%

FS 18 001 18 001 18 001 100% 16 236 90%

GT 15 606 15 606 15 606 100% 12 641 81%

KZN 102 137 102 137 102 137 100% 99 911 98%

LP 49 370 49 370 47 570 96% 30 496 64%

MP 34 291 34 291 33 391 97% 32 445 97%

NC 14 045 1 000 15 045 15 045 100% 13 633 91%

NW 17 266 17 266 17 266 100% 14 618 85%

WC 25 621 25 621 25 621 100% 25 082 98%

Total 355 914 1 000 356 914 354 214 99% 321 765 91%

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Provinces 2013/14 (R’000) 2014/15 (R’000) 2015/16 (R’000)

2016/17 (R’000)


Free State 18 001 26 601

Gauteng 15 606 23 565


Limpopo 49 370 32 247



North West 17 266 14 249


Total 356 914 348 947 356 574 411 798

2015/16 and 2016/17 Allocations breakdowns to provinces are dependent on the previous financial years performance

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Summary by Province

Allocation (R'000)

Transferred to date (R’000)

Transfers as % of Allocation

Expenditure by Public Bodies (R’000)


Eastern Cape 49 728 49 728 100% 49 017 99%Free State 8 545 8 545 100% 8 545 100%Gauteng 27 652 27 652 100% 27 652 100%KwaZulu-Natal 24 306 22 695 93% 15 912 70%Limpopo 57 717 57 717 100% 56 701 98%Mpumalanga 1 961 1 961 100% 1 961 100%Northern Cape 19 879 19 879 100% 14 662 74%North-West 50 870 50 870 100% 51 511 101%Western Cape 16 906 16 906 100% 16 665 99%Total 257 564 255 953 99% 242 626 95%

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Province 2013/14 (R’000)

2014/15 (R’000)

2015/16 (R’000)

2016/17(R’000)


Free State 8 545 11 700

Gauteng 27 652 73 338


Limpopo 57 717 18 632



North West 50 870 26 306


Total 257 564 257 972 267 529 374 662

2015/16 and 2016/17 Allocation breakdowns to provinces are dependent on the previous financial years performance

National Department of Public Works (NDPW)Head Office: Public WorksCGO BuildingCnr Bosman and MadibaPretoria CentralPrivate Bag X65Pretoria0001Website: http://www.publicworks.gov.za

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Documents

2014-19 Strategic Plan 2014/15 Annual Performance Plan